Safe harbor IRA blog posts

With the announcement of the Department of Labor’s recent actions, auto portability has taken center stage in the retirement industry. While auto portability has been well-known to a relatively small group of industry insiders, its recent, widespread coverage in the media has many asking the question “what is auto portability?” In this article, RCH Senior Vice President Tom Hawkins suggests that the best answer may depend on who's asking the question, but one thing's clear: auto portability is an idea whose time has come.

In his monthly column in Consolidation Corner, RCH President & CEO Spencer Williams explains to readers why auto portability is like bacon -- by making everything better for all parties in America’s retirement system.

RCH's Tom Hawkins reveals new research that predicts 401(k) participant outcomes following
separation for two balance segments – those above & below $15,000. Using logic developed in the Auto Portability Simulation to track & tally
participant outcomes 8 years following separation, the results reveal a startling contrast between
the two segments – with participants in the over-$15,000
segment experiencing far-superior outcomes to those in the under-$15,000
segment. To address the disparities, Hawkins advocates for a new “automatic” in the form of auto portability.

Plan sponsors intuitively know that a proliferation of small-balance 401(k) accounts can create problems. But few sponsors are clear on the factors that give rise to small accounts, and fewer still understand how they can utilize portability programs to solve the problem.

In his December 2017 Consolidation Corner blog post, Tom Hawkins writes about auto portability's special qualities. Great all by itself, auto portability also makes a lot of other retirement savings public policy initiatives a lot better.

Individuals should consult their tax advisers or legal counsel for advice and information concerning their particular situation. Retirement Clearinghouse does not give legal, investment, or tax advice. IRA account fees and product information provided by Retirement Clearinghouse, LLC is subject to change without notice at the discretion of the IRA Provider. Securities are offered through RCH Securities, LLC, a wholly owned subsidiary of Retirement Clearinghouse, LLC and a member of FINRA (www.finra.org). RCH Shareholder Services is a wholly owned subsidiary of Retirement Clearinghouse, LLC and a registered transfer agent with the U.S. Securities and Exchange Commission.